Monsanto Co. (MON)

Free Cash Flow to The Firm (FCFF)

Monsanto Co., FCFF calculation

USD $ in millions

12 months ended	Aug 31, 2012	Aug 31, 2011	Aug 31, 2010	Aug 31, 2009	Aug 31, 2008	Aug 31, 2007
Net income attributable to Monsanto Company	2,045	1,607	1,096	2,109	2,024	993
Net income attributable to noncontrolling interest	48	52	19	24	20	12
Net noncash charges	1,070	875	968	1,353	703	655
Changes in assets and liabilities that provided (required) cash, net of acquisitions	(112)	280	(685)	(1,240)	75	194
Net cash provided by operating activities	3,051	2,814	1,398	2,246	2,822	1,854
Cash payments for interest, net of tax	110	104	116	97	73	79
Capital expenditures	(646)	(540)	(755)	(916)	(918)	(509)
Free cash flow to the firm (FCFF)	2,515	2,378	759	1,427	1,977	1,424

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Monsanto Co.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Monsanto Co.'s FCFF increased from 2010 to 2011 and from 2011 to 2012.

Monsanto Co., current EV/FCFF

	Monsanto Co.	Consumer Goods
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	55,675
Free cash flow to the firm (FCFF)	2,515
Ratio
EV/FCFF	22.13	23.72

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Monsanto Co., EV/FCFF calculation

	Aug 31, 2012	Aug 31, 2011	Aug 31, 2010	Aug 31, 2009	Aug 31, 2008	Aug 31, 2007
Selected Financial Data (USD $ in millions)
Enterprise value (EV)¹	46,106	39,347	32,980	38,762	39,627	52,061
Free cash flow to the firm (FCFF)²	2,515	2,378	759	1,427	1,977	1,424
EV/FCFF, Comparison to Industry
Monsanto Co.³	18.33	16.54	43.46	27.16	20.05	36.56
Industry, Consumer Goods	20.77	17.24	12.96	21.97	16.87	–

2012 Calculations

³ EV/FCFF = EV ÷ FCFF
= 46,106 ÷ 2,515 = 18.33

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Monsanto Co.'s EV/FCFF ratio declined from 2010 to 2011 but then slightly increased from 2011 to 2012.